European Central Bank
–
In an interview with CNBC, CNBC On Monday, the politician reportedEuropean Central Bank Central Bank of Malta Governor Edward Chikluna said the ECB may continue to raise interest rates but is unlikely to adopt another large 75 basis point hike.
Shiklona stressed that this will not be the only increase the bank will approve in the next period, but that it will only be the first in a series of increases in the coming months.
The European Central Bank policy maker also made it clear that he does not think a 75 basis point hike will be the norm in the short term, arguing that pressures on Europe’s main source of inflation – energy and food – will ease.
Scicluna noted that the source of the inflation faced by the European Central Bank is not caused by demand – as occurs in the United States – but by the lack of supply and, therefore, by the reasons that drive the European Central Bank’s monetary policy actions differ from those who guide the policy of the US Federal Reserve.
The ECB member also warned that current measures used by European governments to mitigate the impact of rising energy costs on consumers could create other new inflationary pressures.
–
